• Chapter 8 Test Friday
  • Discuss items in 8.5 of the text
    • Meaning of investment
    • Risk/reward of investments
    • Compound interest & the Rule of 72
    • Bond
    • Municipal Bonds
    • Corporate Bonds
    • Stocks
    • Shareholders
    • Dividend
    • Bull market v. bear market
    • Brokerages (Scotttrade, Fidelity, E*Trade)
    • Stock markets-NYSE, NASDAQ
    • Securities & Exchange Commission (SEC)
    • Prospectus
    • Mutual Funds
      • Professionally managed
      • Allows for Diversification
    • Market indexes-Dow Jones Industrial Average (DJIA), Standard & Poor’s 500 (S&P 500)
    • Asset Allocation
      • Personal decision depending on age, risk tolerance, & goals
  • Show one of my Fidelity retirement accounts and discuss mutual funds, diversification, importance of investing to get money growth, patience, long term outlook
  • Passed out Fidelity Chemicals mutual fund financial report
    • Discussed looking at 5-10 year track record
    • $10,000 becomes $35,278 in 10 years
    • Compared it to the S&P 500 Index
    • Chemicals is a narrow sector, but has diversification by investing in many sub categories and multiple companies.
    • $861 million in net assets in this “mutually funded” investment
    • Total Return per year was analyzed. This fund get a consistently high return over a 5-10 year period, but year to year is a roller coaster (down 46.68% in 2009,up 79.15% in 2010)
    • Buy low & sell high. A bear market is just stocks on sale.
  • Completed Asset Allocation assignment together using CNN Money Asset Allocation Calculator
    • Choose 3 different situations and report how the allocation changes in each situation.
  • On the backside of the Asset Allocation assignment there is a chart asking to identify different kinds of investments along with the risk and reward of each. Complete this assignment for homework, due Friday
  • Passed out Financial Recommendations for Clients worksheet.
    • Explained directions and gave about 10 minutes in class to get started, will finish Friday at the start of the hour.
    • Students pick either Client Profiles Packet A or Packet B. Complete recommendations as directed in instructions for their 3 clients. When complete they should find someone with the other packet and find out what the expert recommendations for their clients are.